Chicago Short-Term Rental Regulations

Last verified: 2026-03-26
TL;DR
Chicago requires Shared Housing Registration ($250) with no primary-residence requirement. Combined tax rate is 10.5%. No annual day limit, but each stay must be 31 days or fewer.
Disclaimer
This information is provided for general informational purposes only and does not constitute legal, tax, or regulatory advice. Short-term rental regulations change frequently. Always verify current requirements with your local government before listing your property or making investment decisions.
Key Requirements at a Glance
Permit ✓ Required — Shared Housing Registration ($250)
Primary Residence ✗ Not required
Annual Day Limit No limit — 31 days or fewer
Tax Rate 10.5%
Max Penalty $5,000 per day
Insurance Not required

New to short-term rentals? Jump to the compliance checklist →

Permit & Licensing

Shared Housing Registration

FeeAmount
Initial cost$250
Renewal$250 / 1 year

This permit type does not require primary residence. Zoning restriction: Each registration includes a zoning review to confirm the unit complies with the Chicago Zoning Ordinance.

Application Process

Online via the Shared Housing Registration Portal; hosts submit an application to receive a determination of eligibility; processing time not specified

Tax Obligations

TaxRateAuthority
Chicago Hotel Accommodations Tax 4.5% City of Chicago
Vacation Rental and Shared Housing Surcharge 6% City of Chicago

Combined rate: 10.5% of gross rental income.

Collection: A licensed Short-Term Residential Rental Intermediary collects the hotel accommodation tax and submits it to the City for each rental transaction facilitated through its platform

Filing: Monthly (default), quarterly, or annually depending on IDOR notification; filed via Form RHM-1

Rental Limits

Chicago does not impose an annual cap on the number of nights you can rent. Each individual stay must be 31 days or fewer.

Occupancy & Density Limits

2 persons per guest room (not counting a guest's children under 18), or the unit's actual allowed capacity under the building code

Zoning & Restrictions

Shared Housing Registration: Each registration includes a zoning review to confirm the unit complies with the Chicago Zoning Ordinance

Insurance & Safety

Insurance

Chicago does not require short-term rental operators to carry specific insurance. Standard homeowner policies often exclude short-term rental activity, so many hosts obtain dedicated short-term rental or landlord liability coverage.

Safety & Operating Requirements

Penalties for Non-Compliance

Standard: $1,500–$3,000 per day; Egregious: $2,500–$5,000 per day

Platform Requirements

Platforms must obtain a Short-Term Residential Rental Intermediary license, verify host registration numbers before listing, and collect and remit hotel accommodation tax and surcharge on each transaction

Market Snapshot

Demand context for Chicago from official government and tourism statistics — the latest published annual figures, not a projection of rental income.

MetricValueSource
Population (2025 est.) 2,731,585 (-0.4% since 2020) U.S. Census Bureau
Visitor volume (2024) 55.34 million total visitors (domestic + international) — Chicago (Choose Chicago destination total) Choose Chicago

Major annual events: Lollapalooza (Late July–early August) · Taste of Chicago (July) · Chicago Air and Water Show (August) · Bank of America Chicago Marathon (October)

Figures are the latest annual statistics published by the linked official sources (retrieved 2026-07-13). Visitor counts cover the geography stated by each source, which can be wider than the city itself. Regulations above — not market conditions — determine whether and how you may operate.

Compliance Checklist

Follow these steps to legally operate a short-term rental in Chicago:

  1. Meet safety requirements. Functioning smoke alarms and carbon monoxide detectors installed and maintained in compliance with applicable laws. Name and telephone number of a local contact person, and an evacuation diagram identifying all means of egress, posted conspicuously near the unit entrance.
  2. Apply for Shared Housing Registration. Submit application + $250 fee.
  3. Register for tax accounts. Set up lodging tax accounts with Illinois Department of Revenue.
  4. Display your permit number. Include your permit/license number in all listings and advertisements.
  5. Collect and remit taxes. 10.5% on all bookings.
  6. Renew annually. $250 renewal fee.

Frequently Asked Questions

Do you need a permit to run an Airbnb in Chicago?
Yes. Operating a short-term rental — including an Airbnb or Vrbo — in Chicago requires a Shared Housing Registration.
How much does a short-term rental permit cost in Chicago?
A Shared Housing Registration in Chicago costs $250 per year.
Does Chicago require a short-term rental to be your primary residence?
No. Chicago allows non-owner-occupied short-term rentals, so investment properties can qualify provided you hold the required permit.
How many days a year can you short-term rent in Chicago?
Chicago does not cap the number of nights per year you can short-term rent, though permitting, zoning, and occupancy rules still apply.
What taxes do you pay on a short-term rental in Chicago?
Short-term rental stays in Chicago are subject to a combined 10.5% in lodging taxes. This combines 4.5% Chicago Hotel Accommodations Tax + 6% Vacation Rental and Shared Housing Surcharge. The host is responsible for collecting and remitting them.
What are the penalties for short-term rental violations in Chicago?
Penalties run up to $5,000 per day.

Official Sources

  1. Shared Housing Registrations - City of Chicago
  2. Chicago Municipal Code Chapters 4-13, 4-14, 4-16 - Shared Housing and STR
  3. Hotel Operators' Occupation Tax - Illinois Department of Revenue
  4. Shared Housing Ordinance | City of Chicago BACP
  5. Hotel Accommodations Tax; Vacation Rental and Shared Housing Surcharge - City of Chicago Finance
  6. Chicago Municipal Code 4-5-010 Establishment of business license fees